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Intellectual property (“IP”) such as trademarks or audio content can generate substantial revenue for their owner. However, the terms and extent of the licensing must be carefully considered and agreed upon between the licensor and licensee. Some of these terms to be considered must include the duration of the license, the payments associated as well as the boundaries of the license.

For example, can the licensed IP be used only in some geographic territory? Can the IP be used only in connection with some services and products, but not others? Must the licensee inform the licensor if their use is changing in some specific way such as relocation? Can the licensee use the IP as many times it wants or is it only restricted to a limited number of uses? Can the licensee sublicense the IP? What level of quality checks can the licensor maintain over the licensee’s usage of the IP?

Failure to consider and memorialize the above in an agreement can lead to negative consequences for the owner of the IP, including a loss of ownership.

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